Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q2 2025 Earnings Presentation
21 slides from Capital One Financial's earnings presentation, Jul 22, 2025
Slide 1: Second Quarter 2025 Results
Second Quarter 2025 Results July 22, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and related communications should be read in conjunction with the financial statements, notes, and other information contained in Capital One’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Please note that
Slide 3: Discover Acquisition Summary
Discover Acquisition Summary • On May 18, 2025 Capital One closed the acquisition of Discover Financial Services (“Discover Acquisition”) for a purchase consideration of $51.8 billion with impacts to our continuing operations(1) highlighted below • Discover products were integrated into Capital One’
Slide 4: Q2 2025 Company Highlights
Q2 2025 Company Highlights • Net loss of $4.3 billion, or $(8.58) per diluted common share ◦ Adjusted net income per diluted common share(1) of $5.48 • Pre-provision earnings(1) increased 34% to $5.5 billion • Net interest margin increased 69 bps to 7.62% ◦ Adjusted net interest margin(1) of 7.68% •
Slide 5: Allowance for Credit Losses
Allowance for Credit Losses Credit Consumer Commercial Total Card Banking Banking (Dollars in millions) Allowance for credit losses: Balance as of March 31, 2025 $ 12,510 $ 1,872 $ 1,517 $ 15,899 Charge-offs(1) (3,590) (612) (81) (4,283) Recoveries 862 352 9 1,223 Net charge-offs (2,728) (260) (72)
Slide 6: Allowance Coverage Ratios by Segment
Allowance Coverage Ratios by Segment (1) Credit Card Domestic Card $19,596 $19,229 $20,841 $20,474 $7,560 $8,331 $12,560 $12,494 $12,494 $12,036 $13,040 $12,989 $12,974 $12,510 $12,036 $7,673 $8,098 $12,510 8.47% 8.29% 8.54% 8.36% 8.03% 8.01% 7.98% 7.96% 7.59% 7.62% 6.31% 6.47% 01/01/20 06/30/24 09/
Slide 7: Liquidity
Liquidity Total Liquidity Reserves ($M)(1) 5 10% Q/Q Average Quarterly 5 17% Y/Y Liquidity Coverage Ratio ("LCR") 143,946 131,622 131,084 122,914 123,826 163% 155% 155% 157% 152% 2Q24 3Q24 4Q24 1Q25 2Q25 2Q24 3Q24 4Q24 1Q25 2Q25 Liquidity coverage ratio FHLB eligible loans Cash and cash equivalents
Slide 8: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin 5 25% Q/Q 5 32% Y/Y $9,995 $8,076 $8,098 $8,013 $7,546 7.62% 7.11% 7.03% 6.93% 6.70% (1) 2Q24 3Q24 4Q24 1Q25 2Q25 Net Interest Income (NII) ($M) Net Interest Margin Second Quarter 2025 Highlights • Net interest margin increased 69 bps quarter-over-quarter
Slide 9: Capital
Capital (Dollars in millions) Amount Ratio Common Equity Tier 1 Capital Ratio Common equity Tier 1 (“CET1”) as of March 31, 2025 $ 51,205 13.6% Share Issuances related to Discover Acquisition 50,708 1,007 bps Q2 2025 Net loss (4,277) (85)bps 14.0% 13.6% 13.5% 13.6% 13.2% Common & Preferred Stock Div
Slide 10: Financial Summary—Business Segment Results
Financial Summary—Business Segment Results Three Months Ended June 30, 2025 Consumer Commercial (Dollars in millions) Credit Card Banking Banking Other Total Net interest income (loss) $ 7,293 $ 2,162 $ 602 $ (62) $ 9,995 Non-interest income (loss) 1,802 394 335 (34) 2,497 Total net revenue (loss) 9
Slide 11: Credit Card
Credit Card 2025 Q2 Second Quarter 2025 Highlights 2025 2025 2024 2025 2024 (Dollars in millions, except as noted) Q2 Q1 Q2 Q1 Q2 • Ending loans held for investment up Earnings: $115.8 billion, or 75%, year-over-year; average loans held for investment up Net interest income $ 7,293 $ 5,654 $ 5,294 2
Slide 12: Domestic Card
Domestic Card 2025 Q2 Second Quarter 2025 Highlights 2025 2025 2024 2025 2024 (Dollars in millions, except as noted) Q2 Q1 Q2 Q1 Q2 • Ending loans held for investment up $105.4 Earnings: billion, or 72%, year-over-year; average loans Net interest income $6,822 $5,343 $5,001 28% 36% held for investme
Slide 13: Consumer Banking
Consumer Banking 2025 Q2 Second Quarter 2025 Highlights 2025 2025 2024 2025 2024 (Dollars in millions, except as noted) Q2 Q1 Q2 Q1 Q2 • Ending loans held for investment up $5.6 Earnings: billion or 7% year-over-year; average Net interest income $ 2,162 $ 1,943 $ 2,025 11% 7% loans held for investme
Slide 14: Commercial Banking
Commercial Banking 2025 Q2 Second Quarter 2025 Highlights 2025 2025 2024 2025 2024 (Dollars in millions, except as noted) Q2 Q1 Q2 Q1 Q2 • Ending loans held for investment up Earnings: $842 million or 1% quarter-over-quarter Net interest income $ 602 $ 572 $ 609 5% (1)% and average loans held for in
Slide 15: Appendix
Appendix Capital y,
Slide 16: Discover Acquisition: Preliminary Purchase Consideration Allocation
Discover Acquisition: Preliminary Purchase Consideration Allocation Fair Value as of (in millions, except share and per share data) May 18, 2025(1) Purchase consideration: Shares of Discover common stock issued and outstanding immediately prior to the acquisition 251,679,740 Exchange ratio 1.0192 Nu
Slide 17: Discover Acquisition: Loan and Deposit Fair Value Mark Amortization
Discover Acquisition: Loan and Deposit Fair Value Mark Amortization Total 2025 2026 2027 2028 2029 Thereafter Premium / (Dollars in millions, except as noted) (Discount) Card Loans: Non-PCD $618 $379 $98 $20 $1 $— $1,116 PCD (414) (427) (218) (119) (63) (95) (1,336) Decrease / (Increase) to Interest
Slide 18: Discover Acquisition: Intangible Amortization
Discover Acquisition: Intangible Amortization 2025 2026 2027 2028 2029 Thereafter Total (Dollars in millions, except as noted) Purchase Credit Card Relationships (“PCCR”)(1) $1,073 $1,619 $1,463 $1,307 $1,151 $3,687 $10,300 Network and Financial Partner Relationships(2) 84 135 135 135 135 876 1,500
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures The following non-GAAP measures consist of our adjusted results that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results, however, they may not be comparable to similarly-titled
Slide 20: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures The following summarizes our non-GAAP measures. While these non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the operating performance and capital position of financial services companies, they may not be comparable t
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures The following summarizes our non-GAAP measures. While these non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the operating performance and capital position of financial services companies, they may not be comparable t
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